Here is this week's Used Car Market Report with the latest data from Black Book. What a week it has been for the Editorial team at Black Book! From viewing auctions online and the editors actual attendance, we were hands on with at least twelve auctions, to go along with the sixty-three physical auctions the Black Book survey personnel attended and reported the actual market activity from. Throw in the numerous electronic data feeds and we have a great feel for the market activity.

We also had the chance to see several new and also refreshed models, and even a few that might not appear in the retail market for another year or two. The insight into these new products greatly assists in our analysis for residual projections that Black Book does for leasing purposes and lender portfolio risk analysis. With speed a constant part of the auto industry, racing provides some great technology and engineering results that could possibly show up in production models.

There is no question that the quality of the vehicles over the past few years, along with those in the pipeline, are the most tested and engineered ever for durability, performance and fuel economy. It also means the new vehicle pricing is not likely to come down or even stay stable. What does that mean for the used market? It gives more range for the used prices to climb or at least the average used car starting point year over year might actually increase.

Let’s take a look at the most recent market issues and movements. Gas and diesel prices at the pump can’t seem to find a stable point with gas increasing for the week by 1.6 cents which at $3.69 puts us $.04 above the year ago period levels. Diesel prices at the pump actually decreased for the week by a penny from the previous week to $3.92, which is $.05 over the year ago period for this point in time. These price changes are not enough of a change or price level to affect market activity or values.

The car segment average change increased this past week to -$57 as compared to the -$44 the prior week and the -$33 change from one year ago. The similarity between this past week and the time period of one year ago is that in neither period there were no individual segment types with positive week over week change. The smallest declining segments were the four that showed the most strength overall during the spring tax season, the Entry Level Cars, the Compact Cars and both of the Entry Mid-size and the Upper Mid-size Cars segments.

If you are looking for the most consistent segments in change level for the past two weeks, or maybe better described as the smallest variance in change week over week, the Upper Mid-size Cars change of $3 less than the prior week with a change of -$48 this past week and -$51 the prior week is the winner. A couple of the luxury level vehicle segments actually decreased more this past week than two weeks ago, by $6 and $7 more for the Luxury Level Cars and the Near Luxury Level Cars to -$43 and -$39 respectively.

The truck market is still getting the more positive attention, coming in at an average segment type change of -$9, just less than the -$13 for two weeks ago. This is much better than the -$36 average segment change of one year ago.

The truck related segment with the greatest decline this past week appeared within the Compact Crossovers at -$48. This segment continues to adjust downward, now for five consecutive weeks, after an amazing run of retention over the past couple of years.

The Full-size Vans, with the cargo versions down -$8 and the passenger wagons down by -$5, is a variance from recent market conditions which has been increasing week over week for the past two months.

Other positively reacting segments include the Full-size Pickups at +$12, following the previous twelve weeks of increases. The Full-size SUVs have now reacted positively for the past three weeks, at +$23 this past week.

The resulting value adjustments came from an above average number of changes made each day, 1815, by the industry experienced editors at Black Book, as compared to the only 1390 per day the previous week.

We will be back in the groove again this week, hitting the auction lanes and online airwaves, getting solid market data. Whether it is a new vehicle for your next customer or a solid used vehicle, remember that it is all about the product and with today’s quality models, product is king!